Published 4:00 am, Friday, July 20, 2007

Photo: MARK LENNIHAN

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Gary Forsee, CEO of Sprint Nextel Corp., announces at a news conference in New York Tuesday, Aug. 8, 2006 that the company will use an emerging technology called WiMax to build a new high-speed wireless network. The company said the new network, expected to be available in the fourth quarter of 2007, will provide consumers with wireless Internet speeds on par with DSL and cable TV modems. (AP Photo/Mark Lennihan) less

Gary Forsee, CEO of Sprint Nextel Corp., announces at a news conference in New York Tuesday, Aug. 8, 2006 that the company will use an emerging technology called WiMax to build a new high-speed wireless ... more

Sprint Nextel said Thursday it will work with wireless broadband provider Clearwire to fulfill its plans for a nationwide high-speed wireless network that could greatly improve the speed of mobile Internet connections.

The partnership, outlined in a letter of intent, provides a boost to the nascent, mobile WiMax technology, which promises to bring wireline broadband speeds to wireless devices, speeds eclipsing Wi-Fi and cellular data networks. The deal brings together two potential rivals that have each championed WiMax -- a new wireless connection technology -- and allows them to pool their resources to help construct a nationwide system faster than they would have accomplished separately.

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The network could open up the potential for users to get true mobile broadband wherever they go, even on fast-moving vehicles. And that, in turn, may give rise to a new class of laptops and electronics devices like cameras and gaming systems that are embedded with WiMax chips.

Sprint and Kirkland, Wash.'s Clearwire, will each build separate parts of the network and will enable seamless roaming between their two territories. The service will be marketed under a single name and will be released commercially next year.

The companies, which own a significant amount of the 2.5-GHz spectrum upon which WiMax functions, will swap some spectrum to ensure each partner can best build its areas. When it's completed, Sprint's service will cover 185 million people, including 75 percent of those located in the 50 largest markets. Clearwire will cover the remaining 115 million people. The first 100 million customers could receive service by the end of 2008.

The details of the partnership will be worked out in the next 60 days. The deal is subject to approval by the Federal Communications Commission and the Department of Justice.

"This arrangement will result in stronger competition in the rapidly growing market for broadband services, and will provide consumers, national enterprises and other businesses, educators and public safety agencies greater choice and faster access to a revolutionary mobile broadband technology," said Sprint Nextel Chairman and CEO Gary Forsee.

With mobile WiMax, subscribers will be able to receive speeds similar to DSL and cable, though at lower cost than current cellular 3G networks and with a greater reach than Wi-Fi. Clearwire Chief Executive Officer Ben Wolff said the service can theoretically provide download speeds of 2 to 4 megabits per second, though he said actual performance could exceed that.

"One of the keys of delivering performance is the spectrum, and we're going to have a lot of depth of spectrum," said Wolff. "That will create a very robust network."

The partnership represents a change in course for Sprint, which has been facing increasing concern from its shareholders about the cost of its planned WiMax network. Sprint said last year that it was undertaking a nationwide mobile WiMax network and that two markets -- Chicago and Washington -- would have the service this year.

The company said it planned to cover 100 million customers by the end of 2008. Now Sprint will be responsible for covering 70 percent of the first 100 million customers, easing its initial investment.

Meanwhile, Clearwire has signed up 260,000 subscribers for its WiMax network, which reaches cities in 13 states, including Stockton, Modesto and Merced in the Central Valley. Under the plan, the brainchild of cellular pioneer Craig McCaw, Clearwire will begin shifting new customers to mobile WiMax next year and will start moving its existing customers to mobile WiMax by 2009.

Phil Marshall, an analyst with the Yankee Group, said the partnership is a boon to both sides and should help propel the WiMax technology ahead of rival wireless technologies. But he said Sprint and Clearwire will still need to do a lot of work to ensure there is a market for WiMax and the devices and services that can take advantage of the new technology.

"The trajectory has been created by the ability to deliver mobile Internet service, but it doesn't come without challenges," Marshall said. "You need to develop an ecosystem for a new technology and that could take time."